What happens if the benefits promised in my policy are greater than the coverage limits provided by the guaranty association?
Guaranty associations, in conjunction with the Receiver, may be able to negotiate a transfer of a company’s policies, up to the amount of the guaranty association benefit limits, to a financially sound insurer. If an association administers claims against the policy and the benefit limits are reached, any claim in excess of that limit may be submitted as a policyholder-level claim against the estate of the failed insurance company, and the contract holder may receive distributions as the company’s assets are liquidated by the Receiver.
Related Questions
- I have a policy of a kind excluded from guaranty association protection. What happens to my claim for benefits if my insurer becomes insolvent?
- What happens if the benefits promised in my policy are greater than the coverage limits provided by the Iowa Guaranty Association?
- Where can I go to get more information about the coverage provided by the Texas Guaranty Association?
